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Page 1: 2015 04 04 cmyk NA 04 - The Wall Street Journalonline.wsj.com/public/resources/documents/pageone0404.pdfThelabor market has ap-peared moreresilient, but Fri-day’sreport from the

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A sharp slowdown in hir-ing in the U.S. last monthended a yearlong stretch ofbrisk job creation, stirringworries about the nation’sbroader economic growth. A1Workers’ wages picked upin March, but signs of a long-awaited acceleration in paygains remain elusive. A2 Treasury bonds rallied ina shortened session in re-sponse to the jobs report,while the dollar weakened. B1 An appeals court decidedto leave in place a rulingthat restricts the scope of in-sider-trading prosecutions. B2 Tesla’s sales rose in thefirst quarter despite cheapgasoline and the electric-carmaker’s troubles in China. B1 Toyota will start buildingassembly plants again, budget-ing $1.25 billion for new facto-ries in Mexico and China. B4 The EU is weighing a majorinvestigation into how Inter-net platforms like Google andAmazon operate in Europe. B4 Organic-food purveyorsare tackling supply con-straints in one of the food in-dustry’s hottest segments. A1 Fenway Partners hasbeen warned that the SECmay take action against thefirm over disclosure issues. B2 Disney is investing$250 million in online fantasysports business DraftKings. B3

What’sNewsWorld-Wide

CONTENTSBooks.................. C5-10,14Business News...... B1-5Food.......................... D1,8-9Gear & Gadgets..D11-12Heard on Street.......B12Opinion................... A11-13

Sports.............................. A9Style & Fashion.... D2-4Travel........................... D5-7U.S. News................ A2-4Weather Watch...... B12Wknd Investor...... B7-9World News........... A6-8

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InsideNOONAN A13

MisplayingAmerica’s Hand

With Iran

The durable alliance be-tween Jews and the Dem-

ocratic Party is fraying amidconcerns about the Iran nu-clear agreement and Obama’sfalling out with Netanyahu. A1 Disputes emerged amongofficials over details of theIran accord, suggesting atough course to a final deal. A6 The U.S. has upgraded itslargest bunker-buster bomb,a weapon that could destroyfortified Iranian facilities. A7 Officials called for probesinto reports that Iraqi securityforces executed captives andlooted property in Tikrit. A7 EU officials worried thatGerman oversight of airlineswas lax long before the crashof Germanwings 9525. A8 Black-box data show theplane was repeatedly accel-erated as it descended. A8 Recent arrests are focus-ing attention on jihadists’ ef-forts to recruit U.S. women. A3 Kenyans agonized overtheir government’s inability toprevent a second massacre bymilitants within two years. A8 A U.S. geologist jailed inChina for over seven yearswas released and deported. A8 Texas leaders are grap-pling with how to maintain abeefed-up border patrol be-gun by former Gov. Perry. A4 A Florida town is crackingdown on spring-break revelryafter shootings at a party. A3

Business&Finance

A sharp deceleration in hiringlast month ended a yearlongstretch of heady job creation,stirring concern about broadereconomic growth amid mountingevidence of a slowdown.

Closely watched gauges ofconsumer spending, capital in-vestment and manufacturingoutput have all slumped in re-cent months. A strong dollar hasrestrained U.S. exports and could

BY BEN LEUBSDORF

Slowing Job Growth Tests EconomyTiming of Fed rateincreases called intoquestion as weak hiringpunctuates recent hiccups

GOLDENSTEDT, Germany—Every morning, Bianka Pillepacks her 5-year-old daughter’slunch and sends her off to kin-dergarten with a warning: Watchout for the big bad wolf.

The sighting this past winterof a beast long confined to fairytales has caused a rift in thistown of 9,000 people.

While anxious parents and lo-cal shepherds talk about a wolfhunt, conservationists say an ex-cessively literal reading of “LittleRed Riding Hood” is fueling hys-teria against a canine they say

BY ANDREA THOMAS merely “wants to play.”Meanwhile, shep-

herds and civil servantsare devising kinderways to fend off thepredator: loud music,news broadcasts, fear-less donkeys and caninebrainwashing.

It all started in thelate hours of Feb. 9,when Bianka von Döllen,a 42-year-old mother,spotted a lone wolf nearthe town’s day nursery.

“I froze, it was scary,” she said.“I no longer allow my daughter toride her bike…I fear for her.”

About 150 yearshave passed sinceGerman hunterseradicated wolvesfrom the nation’swoodlands. But theanimal’s threateningaura has persistedthrough folk tales, in-cluding those by Ger-man writers Jacoband Wilhelm Grimm.

So when wolfpacks began reap-

pearing in Germany late in the20th century, thanks to the effortsof conservationists, the animals

Please see WOLVES page A10

Wolf

Many U.S. Jewish leaders areunnerved both by the new Irannuclear agreement and the pub-lic falling out between PresidentBarack Obama and his Israelicounterpart, developments thatare creating a rift in the durablealliance between Jews and theDemocratic Party in the run-upto the 2016 elections.

Worried that Iran might stilldevelop a nuclear weapon de-spite the accord announcedThursday, the Jewish leaders saythey feel torn between an Obamaadministration that has pressedhard for a deal and an Israeligovernment that has repeatedlywarned that Iran is a gravethreat to the Jewish state andcan’t be trusted to abandon itsnuclear ambitions.

A group of Jewish DemocraticHouse members met with WhiteHouse Chief of Staff Denis Mc-Donough in his office last weekand cautioned that for them tohelp “sell a very unpopular [Irannuclear] deal to our constitu-ents,” Mr. Obama must “increasehis popularity with our constitu-ents,” said a Democratic con-gressman involved in the meet-ing.

Republicans have begun mak-ing moves to try to capitalize onthis unease, hoping to peel awayJewish votes and campaign con-tributions that have historicallyskewed Democratic.

Republican congressionalleaders have been critical of theproposed Iran deal, and theGOP’s likely 2016 presidentialcontenders have largely opposedit. It isn’t clear congressional Re-publicans have a way to blockany final deal, and experts warnthat even if a Republican winsthe White House in 2016, it won’tbe as easy to wipe off the booksan international agreement ascampaign rhetoric may suggest.

Hillary Clinton, the presumedPlease see RIFT page A6

BY PETER NICHOLAS

HOLY WEEK: Women in Lima, Peru, took part in a Good Friday procession, while Jewish people world-wide celebrated the beginning of Passover.

HAVANA, Cuba—Listed at $1.2 million,the penthouse has broad terraces, marblefloors and stunning waterfront viewsstretching from the Darth Vader-style Rus-sian Embassy to Meyer Lansky’s old Rivierahotel.

That might seem pricey for a Communistcountry whose average worker earns around$20 a month. But owner John Jefferis, a 57-year-old hotelier from Bermuda, says his tar-get buyer belongs to a different demo-graphic altogether.

“There are very few apartments thatcan be legally purchased by foreigners,and when there’s a limited supply ofsomething, usually there’s a premium forthe price,” says Mr. Jefferis, who addsthat jet-setters like his expat neighborshere can probably afford to splurge. “It’snot their first or second or third home,

Please see CUBA page A10

BY MICHAEL ALLEN AND KEJAL VYAS

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CUBA’S REAL-ESTATE REVOLUTIONDiplomatic thaw brings wave of interest in island’s property; foreign buyers face tough road

ing steps to tackle supply con-straints that are hampering thegrowth of one of the hottest cate-gories of the U.S. food industry.Companies including soup makerPacific Foods of Oregon Inc. andpublicly traded burrito chainChipotle Mexican Grill Inc.are dig-ging deeper into the supply chainwith such moves as financingfarmers, offering technical train-ing and hiring full-time headhunt-ers to recruit organic growers.

The efforts are aimed atramping up organic-food outputthat has failed to keep pace withsurging consumer demand, duein part to the significant costs

Please see ORGANIC page A4

Last year, executives at or-ganic cereal maker Nature’s PathFoods Inc. grew so frustratedwith organic-grain shortfalls thatthey took a radical step: Theybought a farm.

The three-decade-old Cana-dian company plunked downmore than $2 million for 2,800acres of Montana cropland, partof an effort to seize greater con-trol of its supplies of wheat, oatsand other ingredients. “We justwant to secure our own future,”said founder Arran Stephens.

Nature’s Path is among a num-ber of organic-food purveyors tak-

BY ILAN BRAT

Some Germans Really Are Afraid of the Big Bad Wolfi i i

Defenders howl that parents, shepherds are overreacting; guardiandonkeys

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continue to drag down broadergrowth, many economists say.

The labor market has ap-peared more resilient, but Fri-day’s report from the Labor De-partment showed growth innonfarm payrolls slowed inMarch to a seasonally adjusted126,000, the weakest hiring in 15months. The unemployment rateheld steady at 5.5%.

With hiring estimates forJanuary and February reviseddown, job growth averaged197,000 a month during thefirst quarter, down from an av-erage of 324,000 in the finalthree months of 2014 and ee-rily similar to hiring in thefirst quarter of last year, wheneconomic activity contracted

for the first time since 2011.“The recovery’s not as robust

as was assumed,” said MeganGreene, chief economist at JohnHancock Asset Management.“The jobs data is finally catchingup to the rest of the indicators.”

The sudden downturn in hir-ing could complicate the FederalReserve’s plans on when to raiseshort-term interest rates. Cen-tral-bank officials have said con-tinued improvement in labormarkets would be a key factor intheir thinking on rates, and soFriday’s report reduces the

Please see JOBS page A2

Soft QuarterThe U.S. economy has seen several disappointing first quarters sincethe recovery began.Change from the end of the previous quarter in nonfarm payrolls

THEWALL STREET JOURNAL.Sources: Labor Dept. (payrolls); Commerce Dept. (GDP)Note: All figures are seasonally adjusted

–0.2

0

0.2

0.4

0.6

0.8 million

’11 ’12 ’13 ’14 ’152010

2.5% 1.6% 2.3% 2.2% 2.4%

First quarters

Change in annual GDP

Iran DealFuels RiftIn Jewish,DemocratAlliance

Christians Around the Globe Prepare to Celebrate Easter

Wage growth weak..................... A2 Bonds rise, dollar falls................ B1 Heard: The Fed fallout ............ B12

Hunger forOrganicFoodsStretches Supply Chain

Along the famed Malecón seawall in Havana, some buildings are showing the effects ofCuba’s property boom, while others are still badly in need of a fresh coat of paint.

Rocky road to final Iran deal..... A6 Rouhani says pact a step

toward mending ties.................. A6

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